GST on Joint Development Agreement
1. Our understanding
1. Background and Understanding
1.1. In a Joint Development Agreement (JDA), we understand that there will be no direct monetary consideration towards the flats being constructed and handed over by the builder to the landowner. The builder would be given the right to develop the complex, sell his share of flats along with proportionate Undivided Share (UDS) land and retain the sale proceeds, though the entire land is owned by the landowner. Further, we understand there would be no transfer of such UDS land in favor of builder, in the absence of any registration of such land in builder’s favor (which is a must under the Transfer of Property Act), but the landowner would only agree to transfer the UDS land, to the buyers, who buys the builder’ share of flats.